Gateway Tunnel Project Advances as Contract Set for Next Month

Governor Mikie Sherrill announced the next major phase of the Gateway Program during her keynote address at the Regional Plan Association‘s 2026 Assembly in New York on Wednesday, revealing that the Gateway Development Commission is expected to award the New Jersey Surface Alignment contract next month.

The New Jersey Surface Alignment consists of two miles of raised tracks running over the Meadowlands to the Palisades, passing through Kearny, Secaucus, and North Bergen before the tunnel disappears underground beneath the Hudson River.

“It’s the next major portion of work,” Sherrill said. “Two miles of raised tracks that run over the Meadowlands to the Palisades; the only part you’ll see before the tunnel disappears underground. That project alone will create thousands more good, union jobs.”

The announcement comes after months of political and legal battles over the project. Rep. Rob Menendez and New Jersey Democrats called for a reversal of the funding freeze earlier this year, while union members rallied to get workers back on the job after the Trump administration’s attempted cancellation.

Sherrill said the administration took the Trump administration to court three times to restore federal Gateway funding. Workers are back on the job on both sides of the Hudson River and in the river itself.

The Gateway Tunnel is the first new heavy-rail tunnel between New Jersey and New York in 115 years. The project is also expected to support NJ Transit‘s broader modernization effort, which includes replacing the entire fleet by 2031.